Can this motor be bored over since the head is actually molded into the block?
Yes, they can be bored. Done many of 'em.
Anything can be fixed if you are a good enough experienced marine mechanic and willing to spend lots of money and time.........I saw a 25 mercury that ran well on craigslist for 500 bucks. Im sure you can fix yours for much less....lol
One of the hoses was broke, can this cause enough problem to destroy a cylinder?